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AMES REPORTS SECOND-QUARTER RESULTS

 AMES REPORTS SECOND-QUARTER RESULTS
 ROCKY HILL, Conn., Sept. 3 /PRNewswire/ -- Ames Department Stores,


Inc. (NYSE: ADD) today reported a net loss of $36.2 million, or a $1.05 loss per share, for the second quarter ended July 25, 1992, compared with a net loss of $46.5 million, or a $1.33 loss per share for the second quarter ended July 27, 1991.
 The variance in the net loss for the second quarter is principally the result of expense reductions and the curtailment of an interest accrual on certain prepetition debt, partially offset by a decline in gross profit dollars.
 Net sales for the second quarter were $586.5 million, a $103.2 million decrease compared with $689.7 million for last year's second quarter. Approximately $99.6 million of the decrease was attributable to the continued restructuring of the company's operations. Last year's net sales included sales of $91.4 million from 79 closed stores (77 stores closed last year and two stores closed in the normal course of business in June); sales of $4.6 million from Mathews & Boucher, Inc. (M&B), a wholesale sporting goods subsidiary sold in January; and sales of $3.6 million from 15 freestanding Crafts & More stores, which were sold or closed. Comparable-store sales for the second quarter decreased one-half of 1 percent from the prior second quarter on a 369-store base.
 Results for the six months show a net loss of $73.9 million, or a $2.15 loss per share, compared with a net loss of $94.2 million, or a $2.69 loss per share, last year. The variance in the year-to-date net loss is principally the result of the same factors as those discussed above for the second quarter.
 Net sales for the first half were $1.07 billion, a $261 million decrease compared with net sales of $1.33 billion last year. Approximately $197.3 million of the decrease was attributable to the continued restructuring of the company's operations. Last year's net sales included sales of $177.4 million from the 79 closed stores; sales of $12 million from M&B; and sales of $7.9 million from the 15 Crafts & More stores. Primarily due to the first quarter's decline, comparable- stores sales for the first six months decreased 5.6 percent on a 369- store base.
 Ames, which filed for Chapter 11 bankruptcy protection in April 1990, operates 369 discount department stores in 15 Northeastern states.
 AMES DEPARTMENT STORES, INC. AND SUBSIDIARIES
 (Operating as Debtor-in-Possession)
 Consolidated Condensed Statements of Operations
 (000s omitted; unaudited)
 Periods ended Second quarter Two quarters
 7/25/92 7/27/91(A) 7/25/92 7/27/91(A)
 Total sales $617,554 $727,897 $1,121,831 $1,398,190
 Less: Leased
 department sales 31,000 38,182 53,181 68,240
 Net sales 586,554 689,715 1,068,650 1,329,950
 Cost of goods sold,
 transportation and
 buying expenses 453,611 515,051 811,604 991,318
 Gross profit 132,943 174,664 257,046 338,632
 Leased department
 income 5,580 6,873 9,573 12,283
 Other operating
 income 2,708 5,607 4,168 8,760
 Total 141,231 187,144 270,787 359,675
 Store operating, admin.
 and general expenses,
 including leased
 department expenses 163,498 201,554 310,730 390,191
 Depreciation and
 amortization 11,679 14,549 23,352 28,741
 Loss before interest,
 taxes, restructuring,
 and Chapt. 11 exps. (33,946) (28,959) (63,295) (59,257)
 Bankruptcy expenses (3,000) (6,000) (13,000) (12,000)
 Restructuring charges -- -- -- --
 Interest and
 debt expense (2,378) (16,694) (4,811) (34,457)
 Interest income 3,154 5,197 7,199 11,466
 Income taxes -- -- -- --
 Net loss (36,170) (46,456) (73,907) (94,248)
 Weighted average
 common shares
 outstanding (B) 37,582 37,582 37,582 37,582
 Net loss per
 common share (B) $(1.05) $(1.33) $(2.15) $(2.69)
 (A) -- Includes the results of 77 department stores, M&B (the company's former wholesale sporting goods subsidiary), and 15 freestanding Crafts & More stores closed or sold subsequent to the prior year's second quarter (as part of the company's continued restructuring) and not included in this year's results. Also includes the results of two additional closed department stores included in this year's results only through May.
 (B) -- Earnings per share are computed based on the average common shares outstanding and reflect preferred stock dividends (as if accrued) of $3,392 and $6,784 for the second quarter and two quarters, respectively, of both years presented. The convertible preferred stock is not included as a common stock equivalent because the effect would be to decrease the loss per common share otherwise computed.
 Condensed Balance Sheets
 (000s omitted)
 Periods ended 7/25/92 1/25/92 7/27/91
 Assets
 Current assets:
 Cash, short-term
 investments and receivables $396,237 $494,632 $452,205
 Inventories 525,908 439,959 571,661
 Net assets held for disposition 16,808 50,570 35,655
 Other current assets 12,781 12,375 17,275
 Total current assets 951,734 997,536 1,076,796
 Net property 311,680 326,856 412,923
 Other assets 63,197 65,253 84,813
 Total assets 1,326,611 1,389,645 1,574,532
 Liabilities and stockholders' deficit
 Current liabilities:
 Accounts payable and current
 portion of capital lease
 obligations 139,612 112,674 152,748
 Accrued expenses 106,911 105,071 98,507
 Restructuring reserve 11,664 33,812 13,065
 Other current liabilities 16,899 10,558 11,470
 Total current liabilities 275,086 262,115 275,790
 Liabilities subject to settlement
 under the reorganization case 1,776,228 1,776,634 1,740,588
 Capital lease obligations 62,753 64,445 82,411
 Other long-term liabilities 5,843 5,842 7,000
 Stockholders' deficit (793,299) (719,391) (531,257)
 Total liabilities and stockholders'
 deficit $1,326,611 $1,389,645 $1,574,532
 NOTE: The entry to record the disposition of the 77 stores' assets (closed in March 1992) was included in the Jan. 25, 1992, balance sheet.
 -0- 9/3/92
 /CONTACT: Marge Wyrwas or Bill Roberts or Eva Sojka of Ames Department Stores, 203-257-2659, or 203-257-2666, or David Reno of Ogilvy Adams & Rinehart, 212-557-0100, for Ames Department Stores/
 (ADD) CO: Ames Department Stores, Inc. ST: Connecticut IN: REA SU: ERN


CK-OS -- NY035 -- 6423 09/03/92 12:26 EDT
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Publication:PR Newswire
Date:Sep 3, 1992
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